Tiruchy dairy farmers flag deductions from revised milk payments

• Tiruchy dairy farmers allege Rs 4 per litre is being withheld from the revised Rs 44 cow milk procurement price

• Aavin says Rs 2.75 per litre is deducted, with farmers receiving Rs 41.25 and Rs 1 retained for later payment

• Producers urge the government and Aavin to absorb cooperative expenses and ensure the revised rate reaches them in full

Dairy farmers in Tiruchy have raised concerns over deductions from their milk procurement payments, alleging that the reductions have effectively diluted the benefit of the revised rates announced by the Tamil Nadu government.

The state recently increased the procurement price of cow milk by Rs 6 per litre, raising it from Rs 38 to Rs 44, while the procurement rate for buffalo milk was fixed at Rs 53 per litre. The issue came to light after payments were credited to farmers’ bank accounts on 3 October.

Farmers supplying milk to cooperative societies alleged that Rs 4 per litre was being withheld from payments for cow milk, leaving them with only Rs 40 per litre. When they sought clarification, society officials reportedly told them that the deductions were being made towards salaries, administrative expenses, a festival bonus and an incentive that would be paid later in the month.

According to the breakup shared with the farmers, Rs 1.85 per litre was earmarked for salaries and administrative expenses, Rs 1.15 towards the Pongal bonus and Rs 1 was being retained for payment as an incentive at the end of the month.

The farmers have objected to the deductions, arguing that they undermine the purpose of the procurement price hike. They said rising expenses on fodder, cattle feed, veterinary care and other inputs had already put pressure on their finances.

The producers also maintained that administrative and other cooperative society expenses should be borne by the government or the milk union rather than being recovered from farmers’ procurement payments.

The Tiruchy management of Aavin, however, provided a different explanation of the payment structure. Officials said Rs 1.75 per litre was being collected towards the administrative expenses of cooperative milk societies, while Rs 1 per litre was being retained for subsequent payment to farmers.

Under this calculation, the total deduction would be Rs 2.75 per litre, leaving farmers with Rs 41.25 per litre credited to their bank accounts.

Aavin officials also clarified that there would be no separate deduction towards the bonus. Of the Rs 1.75 collected for administrative purposes, half would be used to meet the expenses of cooperative societies, while the remaining portion would go towards bonuses for milk producers.

The management said it was preparing explanatory handbills to help farmers understand the revised payment structure and the manner in which procurement payments were being calculated.

Farmers’ representatives, however, questioned the practice of withholding Rs 1 per litre and subsequently returning the amount as an incentive. They urged the milk union to release the entire procurement amount to producers without delay.

The farmers said deductions made in the past were relatively small, but the current withholdings were placing additional financial pressure on them despite the government's announcement of a higher procurement price.

They have appealed to the Tamil Nadu government and Aavin authorities to review the deductions, absorb cooperative society expenses and ensure that the announced increase in the milk procurement price reaches producers in full.

With IANS inputs